▷ Spain Cancels Golden Visas: What It Means for the Rea

Spain Cancels Golden Visas: What It Means for the Real Estate Market

For over a decade, Spain’s Golden Visa programme has been a golden ticket (pun intended) for non-EU investors looking to secure residency by buying prime real estate. Since its launch in 2013, nearly 14,600 visas have been issued, drawing buyers from China, Russia, the UK, and beyond. But as of April 2025, this chapter of Spanish real estate history will close. Why? Because housing is for living, not speculating—at least according to Spanish Prime Minister Pedro Sánchez.

What Were Golden Visas Anyway?

Golden Visas allowed non-EU citizens to gain residency by purchasing property worth at least €500,000. A dream deal for wealthy investors, but not so much for local residents struggling to buy or even rent a home in cities like Madrid, Barcelona, and Malaga. As housing prices skyrocketed, the programme became a magnet for criticism.

Pedro Sánchez didn’t mince words: "This is not the model of country we need... speculative investment in housing leads to disaster and lacerating inequality."

Why Are Golden Visas Being Scrapped?

The programme wasn’t just about dreamy Mediterranean homes; it came with a big catch. Critics, including EU authorities, flagged golden visas as gateways for money laundering, tax evasion, and security risks. The government’s decision to abolish it came after a staggering rise in applications—3,273 approved in 2023 alone! That’s a lot of luxury homebuyers.

The nail in the coffin? Local housing markets were left gasping for air. In hotspots like Barcelona and the Balearic Islands, property prices became so high that young locals couldn’t dream of owning a place.

The End of an Era

The decision to end the programme wasn’t sudden. Initially, there were discussions about raising the investment threshold to €1 million instead of scrapping it altogether. But with house prices climbing and locals getting priced out, the government decided enough was enough.

The suspension was formalized in Organic Law 1/2025, published on January 3, 2025. Starting April 3, Spain will no longer accept new golden visa applications. However, current visa holders can breathe easy—renewals are still allowed under the old rules.

What Does This Mean for Buyers?

If you’re a foreign investor eyeing Spain, the clock is ticking. You have until April 3, 2025, to lock in your golden visa. After that, you’ll need to explore other routes—such as investing in Spanish businesses or bonds, though these aren’t nearly as popular as buying sun-kissed real estate.

Will Cancelling Golden Visas Solve Spain’s Housing Crisis?

The big question: Will this change actually help locals find affordable housing? Not everyone thinks so. "The housing problem in Spain... is not caused by golden visas, but by the lack of supply and rising demand," said Francisco Iñareta from Idealista, a leading property portal.

Critics argue that the real issue lies in a shortage of homes and unchecked demand, not a few thousand luxury buyers.

A Glimpse at the Numbers

Let’s put things in perspective. While over 3,200 visas were issued in 2023, 94% of them were tied to real estate. The average investment? A whopping €657,204 per visa. Unsurprisingly, most of these homes were in already expensive areas like Madrid and Barcelona.

Top beneficiaries included:

Chinese nationals: Over 2,700 visas in 2023 alone.
Russians: More than 1,100.
Americans and Brits: Roughly 180 each.

What’s Next?

Spain’s decision follows in the footsteps of Portugal, Ireland, and Greece, which have also scaled back or abolished their golden visa programmes. It’s part of a broader EU push to clamp down on these schemes. While this may cool the real estate market in some areas, it’s unlikely to fix housing woes overnight.

For investors, this means a shift in strategy. For locals? Perhaps a glimmer of hope. As Sánchez put it, “Housing must be a right, not a speculative business.”

So, is this the end of sunny Spanish dreams for wealthy foreigners? Not quite, but it’s definitely time to rethink the blueprint.